Keeping vigil even during unusual times

With corruption likely in pandemic management, the CAG’s audit can ensure checks and balances in the health sector
tors, masks and other equipment mendations can contribute im- are proper records, documenta-

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at prices higher than those prevail- provements in various aspects of tion, authentic, accurate, reliable
ing in the market is a serious one. disaster preparedness, manage- and complete information and da-
The opportunity to indulge in cor- ment and mitigation. ta; providing assurance to people’s
ruption exists in disaster manage- As in the rules, all governments representatives, tax payers and
ment. Emergency procurement to and government agencies must the public at large that govern-
K.P. Shashidharan save lives and reduce sufferings have established effective controls ment resources, including funds
are a chance to obfuscate rules over disaster preparedness and and assets are being used pruden-
and procedures, and can happen management and related expens- tially as per the law and regula-

T
he latest India-specific data
on COVID-19 infections is
alarming. With the nation
spending substantial resources to
manage the pandemic, what is the
role of the supreme audit institu-
tion of India, the Comptroller and
Auditor General (CAG) of India?
In this context, the move, in Au-
gust, where the Karnataka State
Legislature’s Public Accounts
Committee (PAC) directed the CAG
to conduct a special audit into the
purchase of COVID-19 equipment
within 15 days, and where the PAC
chairman H.K. Patil ‘chaired a
meeting of the panel and instruct-
ed the CAG to constitute a special
team of its employees to get the
audit of all purchases of COVID-19
equipment’ highlights the role and
significance of the national audit
office in these unusual times. The
panel also asked the CAG to ‘con-
duct an audit of expenditure in-
curred by the State government
under the State Disaster Response
Fund (SDRF). The government
had used the SDRF amount for
purchase of equipment in various
districts’.
Opportunity for graft
The political allegation that funds
(to the tune of ₹2,000 crore) were
siphoned off to purchase inferior
quality of personal protective
equipment kits, sanitisers, ventila-
in all three tiers of governance — creating a new vertical — health,
the Union, the States and Union welfare and rural development on
Territories, urban local bodies, ru- June 1, restructuring the office of
ral local bodies and government the Director General of Audit, Cen-
agencies engaged in procurement tral Expenditure. It is necessary
at all levels. Mr. Patil has also peti- that the CAG undertakes perfor-
tioned the Karnataka State Human mance audits of COVID-19 related
Rights Commission alleging the procurements, the Central Go-
violation of rights of people during vernment Health Scheme (CGHS)
treatment. and Employee State Insurance
If all the major purchases by go- (ESI) hospitals. Audit objectives
vernment entities at all levels are may include the procurement of
audited by the CAG, there can be equipment and drugs for CGHS
substantial improvement in disas- wellness centres and polyclinics,
ter management. It will usher in laboratories and hospitals. For ex-
better transparency, integrity, ample, based on available reports,
honesty, effective service delivery the CGHS provides health-care fa-
and compliance with rules and cilities to about 34.19 lakh benefi-
procedures and governance. ciaries, including government em-
ployees, pensioners and MPs,
A constitutional mandate incurring an expense of ₹5,113
The CAG has the inescapable con- crore, almost half of its total ex-
stitutional and statutory mandate penditure on drugs from 2014-15 to
and responsibility to ensure public 2018-19. A beneficiary survey will
accountability, transparency, ef- become part of the audit process
fective service delivery and good to bring out efficacy of service de-
governance. The management of a livery and the availability and
pandemic is not an exception to quality of drugs. Auditing ESI hos-
this; though in the expediency of pitals and dispensaries is expected
saving lives and alleviating suffer- to provide the assured health-care
ing, there can be reasonable ex- services including infection con-
ceptions to compliance with esta- trol and hygiene.
blished rules and standard The government entities must
operating procedures in procure- have established and effective con-
ment. People’s health is a priority trols over expenses to purchase
audit theme and so is big-ticket pu- equipment. Since the lockdown,
blic expenditure. there has been substantial govern-
The CAG has issued an order ment expenditure. Audit recom-
es (with proper documentation).
As the CAG’s performance audits
are driven by economy, efficiency
and effectiveness, the audit will fo-
cus on expense tracking and
achievement of outputs and out-
come, in qualitative and quantita-
tive terms. The entire process of
procurement of COVID-19-related
equipment and drugs, proper doc-
umentation, and compliance with
rules and regulations can be
streamlined with data analysis, va-
luable inputs and practical recom-
mendations.
Benefits of an inspection
There are usually red flags in disas-
ter management, emergency pro-
curement and related expendi-
tures. Though COVID-19 is an
unparalleled disaster, it may also
provide an opportunity for scam-
sters to siphon off public money
where normal and prudential fi-
nancial regulations cannot be fully
enforced and questions of incon-
sistencies are likely to be over-
looked.
The statutory responsibility of
CAG as an independent, objective,
and non-partisan constitutional
authority includes appraising dis-
aster preparedness, ensuring that
management, mitigation opera-
tions, procedures are complied
with, and proper internal controls
are in place; ensuring that there
tions and safeguarded; providing
assurance that risks are assessed,
identified and minimised with es-
tablished disaster management
process and procedures; and, fi-
nally, offering assurance that re-
sources are being used economi-
cally efficiently and effectively for
achieving the planned objectives
and that benefits have gone to the
targeted beneficiaries.
The internal audit must also en-
sure compliance with applicable
rules and procedures even in dis-
aster-related disbursements and
procurement processes and pro-
vide valuable inputs to the exter-
nal audit conducted by the CAG.
Generally accepted government
auditing standards require that an
audit is planned and performed
with sufficient, appropriate evi-
dence to the audit findings and
conclusions based on the audit ob-
jectives and scope. All public enti-
ties management must be accoun-
table and ensure that resources
are managed properly and used in
compliance with laws and regula-
tions; programmes are achieving
their objectives; and services are
being provided efficiently, effec-
tively, and economically.
K.P. Shashidharan is a former Director
General, Comptroller and Auditor
General of India. The views expressed are
personal